Car on HP

[korhaichokdee]

Some months ago I acted impulsively and found myself commited to a Higher Purchase agremment on a car. I believe I am paying well over the odds for this agreement, and as a mature student I really cannot continue making these payments. If I return the vehicle, I will still have a huge debt to a pay off with the loan company. I understand I have acted inanely and irresponsibly, but I could use any good advice anybody mght have that can help me out of this situation?

[MARTIN3030]

Welcome to the site.

You need to give more information here.

I also think it better this posted in consumer section so will do this for you now.

[buzby]

You don't say how recently your 'impulsive' action was - there may be scope to reject the contract if you move quick enough. Was it new or second hand? If the latter then the loss on resale will be much less than on a new model so getting out of the deal, whilst it might ber expensive, it shouldn't be catastrophic.

[korhaichokdee]

It is a second hand vehicle and I am some months into the contract. I guess I will have to cut my losses and live and learn. Many thanks for the advice.

[buzby]

All isn't lost - if you need to terminate the contract, the best way of doing this is to arrange the sale or transfer of the vehicle to a dealer - the price you may achieve could be lower because of no trade-in, but the money you will receive will be much higher than if it is reposessed from a delinquent purchaser and a 'fire sale' takes place.

 

The dealer will take it off your hands, pay the settlement fee, and give you any residual value after the finance company takes their cut. This way you get a higher price, and it is a normal transaction with no impact on your credit rating - and at no time let the finance house take the strain of selling, you'll lose big time. Your reason for selling isn't important, but if you say your job is taking you to Europe, there's no point letting this vehicle deteriorate in the UK (and you'll need LH drive replacement too!).

[korhaichokdee]

Thank you for your help, it is much appreciated. I believe that what you suggest is a suitable remedy for my predicament.